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Let me first say I am not a specialist in this area, but I work very closely with those who are. As you can see in my profile, I'm in corporate banking and my employer provides 401k services to many of my clients.

I have never seen a participant in a 401k plan be charged commissions/fees/whatever when the employer changes plan providers. If the investment options in a plan charge backend sales loads (fees that are charged when you exit the fund), I sure hope your employer picks up that cost! Check with your HR department (ever notice how they stopped calling it the "Personnel Department" - I guess they've taken the "person" out of "Personnel" - sorry for the side commentary!)

Based on what I've seen, there are no charges to the plan sponsor (your employer) for the "conversion' from another provider. There could be additional costs your employer may incur relating to such things as customized educational materials to be given to the plan participants and stuff like that - usually the employer pays that cost and does NOT pass it to the participants.

If you are being charged costs that appear to be associated with a change in plan providers - I'd question it.

Hope this helps

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